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In this YouTube video tutorial, Rashid explains about zip code validation API. He mentions that there are many premium APIs available with high costs, but he found a free API that works well. The free API can validate zip codes and provide state, country, and city information. It gives similar results to premium APIs. The free API is open source and supports multiple countries. Integrating it is simple. The API provides postal code, country, state abbreviation, and other necessary information for zip code validation.